US Ambassador Congratulates Croatia on Decision to Fund LNG Terminal

By 1 February 2019

ZAGREB, February 1, 2019 - The U.S. Ambassador to Croatia, W. Robert Kohorst, on Friday congratulated the Croatian government, Prime Minister Andrej Plenković and Energy Minister Tomislav Ćorić on the decision to finance the construction of the future LNG terminal on the Adriatic island of Krk.

"Congratulations to the Croatian government – particularly Prime Minister Plenković and Minister Ćorić – for approving funding for the Krk LNG terminal," reads the ambassador's statement.

"This project is an investment which maximizes Croatia’s gas supply options and makes a major contribution to regional gas supply diversification and security. The terminal will make LNG imports from a wide-range of suppliers possible and this competition will ensure the best gas prices," reads the statement posted on the embassy's website.

The diplomat says he is "pleased to see our strategic partner and ally taking such a positive leadership role."

On Wednesday, the Plenković cabinet adopted a decision on financing the first, 234 million euro stage of the LNG terminal project.

The estimated value of the project includes a specific vessel, that is the Floating Storage and Regasification Unit worth 160 million euro, and the construction of the infrastructure necessary for receiving, storing, reloading and regasification of liquefied natural gas, which is likely to cost 60 million euro, while the compensation for the expropriation of the land will require 14 million euro.

In 2017, the European Commission approved a 102 million euro grant for the construction of the floating LNG terminal off Krk.

The government is to set aside 50 million euro in 2019 and 2020 each for the project.

The remaining amount of 32.6 million will be provided by the founders of the LNG Croatia company, the HEP national electricity provider and the Plinacro gas network operator.

Energy Minister Ćorić told the cabinet that the LNG project was of strategic importance for Croatia and would contribute to the country's energy independence and security.

More news on the LNG terminal in Croatia can be found in the Business section.